The objective of the course is to help the students understand the reasons for financial instability and the merits as well as the limits of policies aiming at financial stability. To that end, theory, facts, and policies are systematically brought together and compared. The course provides an overview of the main theoretical and empirical knowledge available on the causes and consequences of financial instability. It discusses the policies that have been considered and/or implemented so as to limit the negative consequences of future crises. The institutions in charge of financial stability at the domestic, European and international levels and the instruments at their disposal are also presented.
Françoise DRUMETZ,Christian PFISTER
Enseignement électif
English
Reading the textbook is required after or preferably before each course.
Solid background in macro and microeconomics. Mathematical skills are not required. The textbook for the course is “Preparing for the Next Financial Crisis” (De Bandt, Drumetz and Pfister, Routledge, 2020). It is available from the Sciences Po library:
https://catalogue-bibliotheque.sciencespo.fr/permalink/33USPC_SPO/1d4eftp/alma991007162059505808
Autumn 2021-2022
Mid-term exam : 50%
Final exam : 50%
For both exams, students are encouraged to use their laptops.
The course is taught basically on an ex cathedra basis, although students will be encouraged to react, express their own views, and ask questions.